# GP Calculator

**GP Calculator Explained:**

**a) What is this?** This calculator tells you the GP$ and GP%

**b) What does this tell me?** How many GP$ have been made and what GP% has been achieved.

**c) Why should I use it?** In simple terms, this calculator tells you how much money you have left after you have sold the product and paid the supplier/vendor for the product. In accounting parlance it is Sales - COGS. This is the method most businesses use to measure for calculating margins.

**d) Caution:** Be careful not to confuse Mark Up% and GP%. Both are referred to as margin. Be sure you know what calculation is being referred to. Margin calculations always exclude GST/VAT or any tax. This calculator doesn't tell you to increase or decrease the GP, it simply tells you what they are. Any decisions to alter GP's are your decision alone.